The present article uses the modified Arkansas off-stream reservoir analysis and the environmental policy-integrated climate models to examine the impacts of on-farm reservoirs and tail water recovery systems in conjunction with other best management practices on profitability, water use, and sediment control for rice-soybean farming operations. Results suggest that, under limited water availability conditions, reservoirs and tail water recovery systems can improve profitability, reduce ground water dependence, and reduce the movement of sediment, nutrients, and pesticides off-farm. Although reservoirs may not be profitable under plentiful water conditions, cost-sharing opportunities may make them a viable means of addressing environmental concerns.
